Market Insights Digital Online Food Delivery

Grocery Delivery - Southeast Asia

Southeast Asia

The Grocery Delivery market in Southeast Asia is anticipated to achieve a revenue of US$24.21bn by 2024.
It is projected to exhibit a compound annual growth rate (CAGR) of 16.81% from 2024 to 2028, resulting in a market volume of US$45.08bn by 2028.
In comparison, the Retail Delivery market is expected to reach a market volume of US$19.42bn in 2024.
Among all countries globally, in China is expected to generate the highest revenue, amounting to US$266,000.00m in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$193.90 in 2024.
Moreover, the number of users in the Grocery Delivery market is expected to reach 166.7m users by 2028.
The user penetration rate in the Grocery Delivery market is estimated to be 18.0% in 2024.
In Southeast Asia, the grocery delivery market in Singapore is thriving with a wide range of options and efficient service.

Market

Region

Region comparison

Currency

Analyst Opinion

Driven by COVID-19 lockdowns, Online Grocery Delivery demand increased rapidly with many new start-ups and established retailers fighting to respond, signaling a landmark year in 2021. Traditional grocery retailers quickly set up logistics, warehouses, and online sales channels for customers to be able to conveniently purchase their daily needs and have them delivered to their doorstep. This growth will slow down in 2022 due to the uncertain macroeconomic environment causing consumers to be more price-conscious and cut out discretionary spending.

Traditional retailers have remained the full basket-offerings option for both online and offline. Players such as Walmart, REWE, Ocado, and Tesco have a large assortment with same-day, scheduled delivery. Consumers are turning to Meal Kits as a replacement for these offerings. Quick Commerce is replacing the convenience stores concept with smaller product offerings, focused on top-up and confectionery items.

China is by far the leader of the Online Grocery Delivery market due to the mature Online Food Delivery market with the most established companies using existing logistics systems and a strong customer base to enhance their product offerings. For example, Meituan has a well-established logistics operation to be able to deliver groceries in under 20 minutes.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.